Carpetright forecasts annual profit at top end of hopes

Carpet retailer Carpetright rolled out higher first-half profits and sales and forecast annual profit towards the top of market hopes, boosting its shares.Carpetright said underlying pre-tax profit in the 26 weeks to 25 October rose by 123.3% to £6.7m on a 2.6% increase in sales to £227.9m, with pre-tax profit more than trebling to £6.7m from £1.9m a year ago.Sales in the UK were up 5% at £194.2m but revenue in the group's rest of Europe business was 9.4% down at £33.7m. However, the mainland European business moved into the black by £1.5m to an underlying operating profit of £100,000 against a year ago.The group has launched a strategic review under new chief executive Wilf Walsh and is planning to modernise its brand with a roll-out in 2015. The number of stores reduced by a net three during the period to 139.It said it now expected full-year underlying profit before tax to be towards the upper end of current market expectations.Walsh said: "I am pleased to report that the group increased profits during the first half, with an encouraging increase in UK like-for-like sales, a return to underlying profit in the rest of Europe and a net cash position at the end of the period."Having made a solid start to the year, we now expect full year underlying pre-tax profits to be towards the upper end of current market expectations. We believe that, with a well researched and well executed strategy, we can begin to reshape Carpetright."Shares rose 33.25p or 10.6% to 346.5p at 08:28 in London.